Judul : Brexit is going to cost easyJet £3 million in relocation costs this year
link : Brexit is going to cost easyJet £3 million in relocation costs this year
Brexit is going to cost easyJet £3 million in relocation costs this year
LONDON — easyJet has spent £1 million in the last six months on its post-Brexit relocation plans.
The airline confirmed on Tuesday that it is on track with plans to set up a new licensed base in the EU to cope with Brexit. The restructuring will cost an estimated £10 million over three years and £3 million of that is expected to be booked this year.
easyJet said: “We also expect to incur costs of around £10 million on the organisational review in the same three year period and up to £6 million this financial year.”
easyJet has already publically said it is looking at setting up a new EU hub with an “Air Operator Certificate (AOC)” to allow it to continue to fly to Europe once Britain officially leaves the European Union. The new entity will handle 30% of easyJet’s traffic.
The update on easyJet’s Brexit plans comes in the budget airline’s half-year results. Passenger numbers rose 9% to 33.8 million in the six months to March 31, with revenue up 3.2% to £1.8 billion.
easyJet made a pre-tax loss of £212 million, well above the £21 million loss it recorded in the first half of last year but in-line with its guidance. The airline blames the late Easter this year and a £82 million hit from unfavourable currency moves. easyJet warned in October that the collapse of the pound against the dollar in the wake of last year’s Brexit vote would cost it “around £90 million.”
CEO Carolyn McCall says in the update: “easyJet is delivering on its strategy of purposeful investment in securing and building strong positions at Europe’s leading airports which is driving competitive advantage with sustainable returns.
“As a result, our expectations for the full year are in line with current consensus market expectations.”
Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.
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